2017 q3 pii earnings pres 10 24-17 final

1. Third Quarter 2017 Earnings Results
October 24, 2017
POLARIS INDUSTRIES INC.

2. SAFE HARBOR & NON-GAAP MEASURES
2Q3'17 Earnings
Except for historical information contained herein, the matters set forth in this presentation, including management’s expectations regarding 2017 &
2018 future sales, shipments, net income, and net income per share, and operational initiatives are forward-looking statements that involve certain
risks and uncertainties that could cause actual results to differ materially from those forward-looking statements. Potential risks and uncertainties
include such factors as the Company’s ability to successfully implement its manufacturing operations expansion initiatives, product offerings,
promotional activities and pricing strategies by competitors; economic conditions that impact consumer spending; acquisition integration costs;
product recalls, warranty expenses; impact of changes in Polaris stock price on incentive compensation plan costs; foreign currency exchange rate
fluctuations; environmental and product safety regulatory activity; effects of weather; commodity costs; uninsured product liability claims;
uncertainty in the retail and wholesale credit markets; performance of affiliate partners; changes in tax policy and overall economic conditions,
including inflation, consumer confidence and spending and relationships with dealers and suppliers. Investors are also directed to consider other
risks and uncertainties discussed in documents filed by the Company with the Securities and Exchange Commission. The Company does not
undertake any duty to any person to provide updates to its forward-looking statements. The data source for retail sales figures included in this
presentation is registration information provided by Polaris dealers in North America and compiled by the Company or Company estimates. The
Company must rely on information that its dealers supply concerning retail sales, and other retail sales data sources and this information is subject
to revision.
This presentation contains certain non-GAAP financial measures, consisting of “adjusted” sales (total and organic), gross profit, operating
expenses, net income and net income per diluted share as measures of our operating performance. Management believes these measures may be
useful in performing meaningful comparisons of past and present operating results, to understand the performance of its ongoing operations and
how management views the business. Reconciliations of adjusted non-GAAP measures to reported GAAP measures for Q3 are included on slide 3
and Q3 year-to-date are included in the appendix contained in this presentation. These measures, however, should not be construed as an
alternative to any other measure of performance determined in accordance with GAAP.

3. Q3 NON-GAAP DISCLOSURE
3Q3'17 Earnings
Reconciliation of GAAP "Reported" Results to Non-GAAP "Adjusted" Results
(IN THOUSANDS, EXCEPT PER SHARE DATA; UNAUDITED)
Key Definitions: Throughout this presentation, the word “Adjusted” is used to refer to GAAP results excluding: TAP integration expenses, impacts associated with the Victory®
Motorcycles wind down and manufacturing network realignment costs.
Adjustments: (1) Represents adjustments for the wind down of Victory Motorcycles, including wholegoods, accessories and apparel
(2) Represents adjustments for TAP integration expenses
(3) Represents adjustments for manufacturing network realignment costs
(4) The Company used its estimated statutory tax rate of 37.1% for the non-GAAP adjustments, except for the non-deductible items
2016 Reclassified Results: 2016 sales and gross profit results for ORV/Snowmobiles, Motorcycles and Aftermarket are reclassified for the new Aftermarket reporting segment.
Reported GAAP Measures 2017 Adjustments(4) Adjusted Measures
Three months ended September 30, Three months ended September 30, Three months ended September 30,
2017 2016 % Change
Victory
Wind Down(1) TAP(2) Realignment(3) Total 2017 2016 % Change
Sales
ORV/Snowmobiles $ 1,007,392 $ 895,550 12% — — — — $ 1,007,392 $ 895,550 12%
Motorcycles 155,059 181,181 (14)% $ 1,560 — — $ 1,560 156,619 181,181 (14)%
Global Adj. Markets 91,575 78,485 17% — — — — 91,575 78,485 17%
Aftermarket 224,700 29,851 653% — — — — 224,700 29,851 653%
Total sales 1,478,726 1,185,067 25% 1,560 — — 1,560 1,480,286 1,185,067 25%
Gross profit
ORV/Snowmobiles 296,904 221,595 34% — — — — 296,904 221,595 34%
% of sales 29.5% 24.7% +473 bps 29.5% 24.7% +473 bps
Motorcycles 10,354 20,301 (49)% 7,555 — — 7,555 17,909 20,301 (12)%
% of sales 6.7% 11.2% -453 bps 11.4% 11.2% +23 bps
Global Adj. Markets 15,983 21,828 (27)% — — 6,214 6,214 22,197 21,828 2%
% of sales 17.5% 27.8% -1,036 bps 24.2% 27.8% -357 bps
Aftermarket 63,239 10,591 497% — — — — 63,239 10,591 497%
% of sales 28.1% 35.5% -734 bps 28.1% 35.5% -734 bps
Corporate (22,518) (13,545) — — — — (22,518) (13,545)
Total gross profit 363,962 260,770 40% 7,555 — 6,214 13,769 377,731 260,770 45%
Gross profit % 24.6% 22.0% +261 bps 25.5% 22.0% +351 bps
Operating expenses 265,192 222,576 19% (1,254) (3,492) — (4,746) 260,446 222,576 17%
Other expense (income), net (2,368) 5,700 NM — — — — (2,368) 5,700 NM
Net income $ 81,888 $ 32,312 153% $ 5,537 $ 2,195 $ 3,906 $ 11,638 $ 93,526 $ 32,312 189%
Diluted EPS $ 1.28 $ 0.50 156% $ 0.09 $ 0.03 $ 0.06 $ 0.18 $ 1.46 $ 0.50 192%

4. Scott W. Wine, Chairman & CEO
Third Quarter 2017 Earnings Results
October 24, 2017
POLARIS INDUSTRIES INC.

5. Q3 SUMMARY
5Q3'17 Earnings
Q3 Exceeded Expectations – Raising Full Year Adjusted* Sales & EPS Guidance
Operational improvements gained momentum in Q3
Record sales quarter, sequential improvement in operating income margin
N.A. Retail sales strong in Q3; up 13%
ORV up mid-teens % with RZR retail up high-teens percent
Indian Motorcycles retail up 16%; share gains ongoing; all segments grew share
Operational execution overcame significant natural disasters:
Hurricanes Harvey & Irma; floods in Mexico; transportation shortage
Model year 2018 product launch well received; initial orders solid
Improving quality with each model year changeover
Factory Authorized clearance highly effective
Dealer inventory lowest in 3 years on a September 30th quarter-over-quarter basis
International and PG&A growth momentum continued in Q3
* See GAAP/Non-GAAP Reconciliation on Slide #3

6. NORTH AMERICAN POWERSPORTS RETAIL SALES
Polaris N.A. retail up 13% for Q3 2017 vs. Q3 2016
Indian Motorcycle retail was up 16% - continued share gains
ORV retail up mid-teens %; RZR up high-teens
Promotional spend in-line with expectations and industry trends
North American Industry up low-single digits
SxS growth continued strong; ATVs up low-single digits %
-9%
-4%
-6%
-3%
+13%
Q3 2016 Q4 2016 Q1 2017 Q2 2017 Q3 2017
(# vehicle units) POLARIS INDUSTRY
Off-Road Vehicles mid-teens % high-single digits %
(estimated)
Side-by-Sides
ATVs
mid-teens %
mid-teens %
Motorcycles mid-single digits % high-single digits %
(900cc & above)
Indian
Slingshot
mid-teens %
high-teens %
Snowmobiles
(season-end Mar’18)
(off-season) (off-season)
N.A. Retail Turned Position After Five Quarter Decline
Q3’17 Retail Sales by Business (vs. Q3’16)Polaris Retail Sales
Q3'17 Earnings 6
Year-Over-Year Retail % Change (units)

7. Q1 Q2 Q3 Q4
2015 2016 2017
Polaris Q3 2017 N.A. dealer inventory down 7% vs. Q3 2016
ORV down 12%, RZR down double digits %
Motorcycles up as expected, all Indian; Slingshot flat
SxS RFM implementation in process
Dealer inventory at year-end expected down modestly given recent retail strength
Dealer Inventory Levels Appropriate, in Aggregate, as RFM Implementation Begins
Q3 Total N.A. Dealer InventoryPolaris N.A. Total Dealer Inventory
NORTH AMERICAN DEALER INVENTORY
Q3 2016 Existing ORV
Models
New ORV
Models
Snowmobiles Motorcycles Q3 2017
-7%
Q3'17 Earnings 7
YE 2017
expectations down
low-single digits
-6%
Year-over-year % Change in Units
-10%
+1% 0% +2%
-10%
vs. 2015
-8%
vs. 2015
-8%
– – – 2017 expectations
-7%

8. Organizational Change
8Q3'17 Earnings
Smooth Transition Expected
Matt Homan
President – Off–Road Vehicles
Polaris: 2002 - 2017
Chris Musso
President – Off-Road
Vehicles/Snowmobiles
Effective November 6, 2017
Highly successful 15 year career with Polaris
Held multiple senior leadership positions
Head of EMEA and Global Adjacent Markets
Grew side-by-side business from $280M to over $2.5B
More than doubled market share
Stabilized ORV business over past two years
Strengthened team and multi-year product plan
Intensified dealer engagement
More focused marketing plan
~20 years assisting clients drive growth and profitability
Senior partner of McKinsey & Company
Heads Americas Product Development Group
Redesigned dozens of automotive, consumer and aerospace
products and business models to drive enhanced profitability
Designed and optimized several product development processes
Led McKinsey’s thrust into industrial design with acquisition of Lunar
Founding partner/leader of Denver office (100+ consultants)
Developed and implemented strategies focused on performance and
portfolio enhancements
Avid Powersports enthusiast; strong industry knowledge

9. Polaris Strategic Objectives – Under Review
Initial rollout – January 2009 (2010 – 2014)
$3 Billion; 8% Net Income Margin
Performance exceeded expectations
Current targets (2014 – 2020)
>$8 Billion in Sales  implied CAGR +14%
>10% Net Income Margin  implied CAGR +37%
Q3'17 Earnings 9
Will Update 5-Year Objectives in January After Completion of 2017

10. Mike Speetzen, EVP Finance & CFO
Third Quarter 2017 Earnings Results
October 24, 2017
POLARIS INDUSTRIES INC.

11. Q3 2017 GAAP AND ADJUSTED* SALES AND INCOME
Q3 reported sales were $1,479 million, up 25% from Q3 2016; Reported net income was $82 million, up 153% from prior year
Adjusted* sales were up 25% finishing ahead of expectations
Acquisition of Transamerican Auto Parts (TAP) added $191 million of sales in Q3 2017
Q3 2016 includes Victory sales of $39 million
ORV/Snowmobile sales up 12%; Motorcycles down 14% (up 10% excluding Victory); Global Adjacent Markets up 17%; Aftermarket up significantly
(TAP)
GAAP earnings per share was $1.28, up 156% from prior year; Adjusted* earnings per share was $1.46, up 192%
GAAP gross profit margin up 261 bps; Adjusted* gross profit margin up 351 bps: VIP, product mix, warranty, freight/rework
Results Finished Strong In Spite of Headwinds During the Quarter
Q3 2017 GAAP and Adjusted* Net IncomeQ3 2017 GAAP and Adjusted* Sales
$1,185
+25%
$1,479
+25%
$1,480
Q3 2016
Reported
Q3 2017
GAAP*
Q3 2017
Adjusted*
$32
+153%
$82
+189%
$94
Q3 2016
Reported
Q3 2017
GAAP*
Q3 2017
Adjusted*
($ millions)($ millions)
Q3'17 Earnings 11
* See GAAP/Non-GAAP Reconciliation on Slide #3

12. Sales Guidance by Segment (1)Adjusted* Earnings Per Share Guidance
Q3'17 Earnings
Total Company Adjusted* Sales Guidance
$4,517
2016
Actual
2017
Guidance
$3.48
2016 Adjusted* 2017 Adjusted*
Guidance
Full Year Adjusted* Sales & EPS Guidance Increased
2017 FULL YEAR ADJUSTED* SALES GUIDANCE
ORV market improving globally
Organic** revenue expectations +6% to +7%
TAP FY’17 = incremental $675 to $690
Victory wind down / FX = ~($150)
+ $120M non-recurring warranty, legal and other
recall related costs
+ TAP accretive approx. 25¢ to 30¢
+ VIP
+ Lower tax rate
+ Share count
+ Product Mix
– Higher R&D expense
– Higher promotional costs
– Higher freight/rework
– Higher variable compensation costs
($ millions)
+18% to +19%
$5,330 to $5,370
(increased)
+36% to +39%
$4.75 to $4.85
(increased)
*See appendix for discussion regarding non-GAAP
adjustments excluded from 2017 guidance
**Organic revenue excludes TAP, Victory sales and the
effects of FX
ORV/SNOW
MID-SINGLE DIGITS %
MOTORCYCLES
HIGH-TEENS %
(Victory included in 2016 #’s)
MID-SINGLE DIGITS %(2)
(Victory excluded in 2016 #’s)
ADJACENT MARKETS
LOW-DOUBLE DIGITS %
AFTERMARKET
SIGNIFICANTLY
(1) Includes respective PG&A. 2016 sales, for comparison purposes, have been
reclassified to account for the new Aftermarket segment which included
aftermarket brands previously reported in their respective segments
(2) On a comparable basis, motorcycle expectations is “Up mid-single digits %” in
2017 after adjusting for Victory wholegood, accessories and apparel sales
reported in 2016
12

13. GROSS PROFIT MARGIN GUIDANCE
Adjusted* Gross Profit 2017 GuidanceGross Profit Q3 2017
22.0%
+261 bps
24.6%
+351 bps
25.5%
Q3 2016 Q3 2017
GAAP*
Q3 2017
Adjusted*
24.7%
FY 2016 FY 2017 Adjusted*
Guidance
GM Growth Drivers
+ VIP
+ One-time warranty
+ Acquisitions
+ Product Mix
– Quality feature adds
– Promos / Incentives
Q3 2017 Gross Margin Improvement Driven Primarily by One-Time Warranty, VIP & Product Mix
Q3'17 Earnings 13
Increase up
to ~180 bps
(unchanged)
KEY: Improvement Headwind Neutral
Gross Margin
by Segment Q3 2016
Q3 2017
GAAP*
Q3 2017
Adjusted*
ORV/Snow 24.7% 29.5% 29.5%
Motorcycles* 11.2% 6.7% 11.4%
Adjacent Markets* 27.8% 17.5% 24.2%
Aftermarket* 35.5% 28.1% 28.1%
Adjusted* Gross Margin
by Segment
2017 Expectations
(unchanged)
ORV/Snow
Motorcycles
Adjacent Markets
Aftermarket (excluding TAP)
*See appendix for discussion regarding non-GAAP adjustments excluded from 2017 guidance
GM Growth Drivers
+ Product Mix
+ VIP
+ Acquisitions
+ One-time warranty
– Promos / Incentives
– Freight/rework

14. 2017 OTHER FULL YEAR EXPECTATIONS
14Q3'17 Earnings
Slight Improvement in Operating Leverage Given Strong Sales Growth
Adjusted operating expenses: increase in the 50 to 60 bps range, as a percent of sales (slightly improved)
Increased R&D – up ~20% excluding TAP; quality & innovation
Higher variable compensation costs
TAP operating expense
Income from financial services: down ~5% primarily due to lower dealer inventory levels and lower retail
credit income (improved)
Interest expense: more than double due to TAP acquisition funding (unchanged)
Income taxes: approximately 32% of pretax profits (lowered)
Supplemental:
International sales: up high-single digits % over 2016 (improved)
PG&A: up mid-single digits % (unchanged)
Diluted shares outstanding: down about 2% (narrowed)

15. OFF-ROAD VEHICLES (ORV) / SNOWMOBILES
Q3 2017 ORV/Snow Segment Sales
Q3 2016 Q3 2017
ORV up 12% in Q3 2017 vs. Q3 2016
RZR up significantly
Gained share in ATVs and side-by-sides in Q3
PG&A up 5%
Average selling price for ORV up 6% in Q3’17;
Snowmobiles up 2%
2017 Guidance: Up mid-single digits % (increased)
PII ORV improving worldwide
N.A. ORV industry up high-single digits % in Q3
Increased Market Share for Both ATV & Side-by-Sides in Q3
Q3'17 Earnings 15
12%
$1,007
ORV
PG&A
Snow
$896
ORV
PG&A
Snow
5%
20%
13%
% ∆
($ millions)
(1) 2016 sales, for comparison purposes, have been reclassified to account for the new Aftermarket segment
which included aftermarket brands previously reported in their respective segments
Reclassified(1)
NEW! RANGER XP 1000

16. Q3 2016 Q3 2017
GAAP*
Q3 2017
Adjusted*
7%
10%
5%
113%
10%
Reported and Adjusted* sales down 14%
**Motorcycles up 10% excluding Victory sales
Indian shipments up; Slingshot sales lower
Average selling price down 4% in Q3, excluding Victory
2017 Guidance: Down high-teens %*** (unchanged)
On a comparable basis, motorcycle expectations is “Up mid-single
digits %” in 2017 after adjusting for Victory wholegood, apparel and
accessories sales reported in 2016
Overall motorcycle market remains weak
% ∆
MOTORCYCLES
Q3 2017 Motorcycles Segment Sales
Continued Market Share Gains for Indian Motorcycle; Momentum Accelerating
Q3'17 Earnings 16
14%**
$157
PG&A
$181
PG&A
Indian
Slingshot
Indian
Slingshot
($ millions)
Victory
* See GAAP/Non-GAAP Reconciliation on Slide #3
*** See appendix for 2017 guidance adjustments
(1) 2016 sales, for comparison purposes, have been reclassified to account for the new Aftermarket segment
which included aftermarket brands previously reported in their respective segments
Reclassified(1)
PG&A
Indian
Slingshot
% ∆14%
$155
Victory
Indian Motorcycle Bobber

17. Q3 2016 Q3 2017
21%
16%
GLOBAL ADJACENT MARKETS (GAM)
Q3 2017 GAM Segment Sales
GAM 17% due to Aixam and Goupil strong performance;
increased Military and PG&A sales
Average selling price for GAM was up 3% in Q3’17
2017 Sales Guidance: Up low-double digits % (increased)
Aixam, Goupil and Military Driving Increase in Q3
Q3'17 Earnings 17
17%
$92
PG&A
$78
PG&A
% ∆
W&T /
Defense
W&T /
Defense
($ millions)
Goupil G5

18. AFTERMARKET
Q3 2017 Aftermarket Segment Sales
TAP added $191 million to Q3 sales
Other Aftermarket brands up 14%
Total Aftermarket up 6 percent on a pro-forma basis
quarter-over-quarter
2017 Sales Guidance: Up significantly from TAP sales
(unchanged)
TAP Performance & Integration Meeting Expectations
Q3'17 Earnings 18
$225
Q3 2016 Q3 2017
($ millions)
Significantly
$191
Reclassified*
*2016 sales, for comparison purposes, have been reclassified to account for the new Aftermarket segment which
included aftermarket brands previously reported in their respective segments
$30

19. 2017 POLARIS FINANCIAL POSITION
19Q3'17 Earnings
Capital Summary September 2017Cash Drivers
Variance to
September 2016
Cash $ 132 +8%
Debt /Capital Lease Obligations $ 920 +111%
Shareholders’ Equity $ 896 -3%
Total Capital $1,816 +33%
Debt to Total Capital 51% -19 % points
Operating cash flow up from improved working capital
Factory inventory up sequentially from Q2, new model year
change over
Cap Ex expected to be lower than 2016 (unchanged)
Operating cash flow expected to be down due to timing of
accrual payments, Victory wind down and manufacturing
realignment
Operating Cash Flow
Cash Flow and Net Debt Improving – Strong Financial Position Ongoing
Cash
YE 2016
Operating
Activities
Dividends Capex Net Debt Share
Repurchase
Other Cash
Q3 2017
$127 $132
$426
+16%
$494
YTD Q3 2016 YTD Q3 2017
($ millions) ($ millions)
($ millions)
Year-to-date 2017 Summary
FY 2017 Expectations
$572
YE 2016 YE 2017
Down low
double digits %
Expectations
+$494
-$109
-$127
-$227
-$89
+$63

20. Scott W. Wine, Chairman & CEO
Third Quarter 2017 Earnings Results
October 24, 2017
POLARIS INDUSTRIES INC.

21. 21Q3'17 Earnings
2018 Initial Thoughts
Solidify Execution Improvements; Deliver Another Year of Improved Sales and Profitability
Economy stable, political landscape unpredictable; must remain flexible/adaptable
Powersports industry trends unchanged: ORV stable, Motorcycles challenged
Polaris ORV market share stable; Indian Motorcycle share gains ongoing
SxS RFM implementation completed; significant improvement in on-time delivery
Safety, quality and innovation improved/accelerated
Gross VIP savings continue; plant optimization delivers leverage

22. Thank You
Questions?
POLARIS INDUSTRIES INC.

23. APPENDIX
Q3 2017 SUPPLEMENTAL SALES PERFORMANCE (PG&A / INTERNATIONAL)
Q3 FINANCIAL SERVICES
Q3 YEAR-TO-DATE NON-GAAP DISCLOSURE
2017 GUIDANCE ADJUSTMENTS
Q3'17 Earnings 23

24. ORV/
Snow
Motorcycles
GAM
Q3 2017
ORV
73%
6%
12%
9%
ORV /
Snow
57%
16%
27%
Parts
47%
Accessories
49%
4%
13%
EMEA
68%
Asia
Pacific
19%
EMEA
AP
LA
Q3 2017
International**Core Parts, Garments & Accessories (PG&A)*
24Q3'17 Earnings
Q3 2017 SUPPLEMENTAL SALES PERFORMANCE
Motorcycles
Global Adjacent
Markets (GAM)
6% Snowmobiles
Motorcycles
Global Adjacent
Markets (GAM)
Apparel
Latin
America
40%
6%
10%
6%
12%
Q3 Sales 7% to 207 Million Q3 Sales 11% to $157 Million
∆ from
Q3'16
∆ from
Q3'16
*Based on GAAP reporting; does not include Aftermarket **Based on GAAP reporting

25. 62% 65%
Q3 2016 Q3 2017
Retail CreditWholesale Credit PA Receivables
25Q3'17 Earnings
Income from Financial Services
Other
Wholesale
Credit
Q3 2016 Q3 2017 Q3 2016 Q3 2017
Portfolio Remains Healthy
INCOME FROM FINANCIAL SERVICES
Polaris Acceptance (PA) receivables down, trending with dealer inventory
Q3 income from financial services down – lower wholesale income
FY 2017 Guidance: Income from financial services down about 5% (improved)
Retail financing income improved
$19
6%
$18 7%
$1,157
$1,246
($ millions) ($ millions)
31% 30%
Q3 2016 Q3 2017
Approval Rate Penetration Rate
Wholesale
Credit
Retail
Financing
Retail
Financing

26. Q3 YTD NON-GAAP DISCLOSURE
Reconciliation of GAAP "Reported" Results to Non-GAAP "Adjusted" Results
(In Thousands, Except Per Share Data; Unaudited)
Key Definitions: Throughout this presentation, the word “Adjusted” is used to refer to GAAP results excluding: TAP inventory step-up purchase accounting, TAP integration
expenses, impacts associated with the Victory Motorcycles® wind down and manufacturing network realignment costs.
Adjustments: (1) Represents adjustments for the wind down of Victory Motorcycles, including wholegoods, accessories and apparel
(2) Represents adjustments for TAP acquisition inventory step-up and TAP integration expenses
(3) Represents adjustments for manufacturing network realignment costs
(4) The Company used its estimated statutory tax rate of 37.1% for the non-GAAP adjustments, except for the non-deductible items
2016 Reclassified Results: 2016 sales and gross profit results for ORV/Snowmobiles, Motorcycles and Aftermarket are reclassified for the new Aftermarket reporting segment.
Reported GAAP Measures 2017 Adjustments(4) Adjusted Measures
Nine months ended September 30, Nine months ended September 30, Nine months ended September 30,
2017 2016 % Change
Victory
Wind Down(1) TAP(2) Realignment(3) Total 2017 2016 % Change
Sales
ORV/Snowmobiles $ 2,577,003 $ 2,402,985 7% — — — — $ 2,577,003 $ 2,402,985 7%
Motorcycles 473,345 594,840 (20)% $ 507 — — $ 507 473,852 594,840 (20)%
Global Adj. Markets 280,152 243,553 15% — — — — 280,152 243,553 15%
Aftermarket 666,928 57,462 1,061% — — — — 666,928 57,462 1,061%
Total sales 3,997,428 3,298,840 21% 507 — — 507 3,997,935 3,298,840 21%
Gross profit
ORV/Snowmobiles 776,013 656,076 18% — — — — 776,013 656,076 18%
% of sales 30.1% 27.3% +281 bps 30.1% 27.3% +281 bps
Motorcycles 11,589 86,475 (87)% 54,970 — — 54,970 66,559 86,475 (23)%
% of sales 2.4% 14.5% -1,209 bps 14.0% 14.5% -49 bps
Global Adj. Markets 65,297 66,163 (1)% — — 10,517 10,517 75,814 66,163 15%
% of sales 23.3% 27.2% -386 bps 27.1% 27.2% -10 bps
Aftermarket 164,721 18,272 801% — 12,950 — 12,950 177,671 18,272 872%
% of sales 24.7% 31.8% -710 bps 26.6% 31.8% -516 bps
Corporate (60,781) (34,135) — — — — (60,781) (34,135)
Total gross profit 956,839 792,851 21% 54,970 12,950 10,517 78,437 1,035,276 792,851 31%
Gross profit % 23.9% 24.0% -10 bps 25.9% 24.0% +186 bps
Operating expenses 777,371 600,471 29% (9,270) (10,509) — (19,779) 757,592 600,471 26%
Other expense (income), net 7,088 7,586 (7)% (13,000) — — (13,000) (5,912) 7,586 NM
Net income $ 141,018 $ 150,367 (6)% $ 53,378 $ 14,746 $ 6,611 $ 74,735 $ 215,753 $ 150,367 43%
Diluted EPS $ 2.21 $ 2.30 (4)% $ 0.83 $ 0.23 $ 0.10 $ 1.16 $ 3.37 $ 2.30 47%
Q3'17 Earnings 26

27. 2017 GUIDANCE ADJUSTMENTS
27Q3'17 Earnings
2017 guidance excludes the pre-tax effect of TAP inventory step-up purchase accounting of approx. $15 million, acquisition
integration costs of approx. $15 million, manufacturing network realignment costs of approx. $10 million to $15 million and the
impacts associated with the Victory wind down which is estimated to be in the range of $80 million to $90 million. 2017 adjusted
sales guidance excludes any Victory wholegood, accessories and apparel sales and corresponding promotional costs as the
Company is in the process of exiting the brand. The Company has not provided reconciliations of guidance for adjusted diluted
net income per share, in reliance on the unreasonable efforts exception provided under Item 10(e)(1)(i)(B) of Regulation S-K.
The Company is unable, without unreasonable efforts, to forecast certain items required to develop meaningful comparable
GAAP financial measures. These items include costs associated with the Victory wind down that are difficult to predict in advance
in order to include in a GAAP estimate.

28. 28Q3'17 Earnings